Gilmore, Inc., had equity of $160,000 at the beginning of the year. At the end of the year, the company had total assets of $315,000. During the year, the company sold no new equity. Net income for the year was $34,000 and dividends were $4,400. a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the internal growth rate using ROA x b for beginning of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the internal growth rate using ROA x b for end of perlod total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Gilmore, Inc., had equity of $160,000 at the beginning of the year. At the end of the year, the company had total assets of $315,000. During the year, the company sold no new equity. Net income for the year was $34,000 and dividends were $4,400. a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the internal growth rate using ROA x b for beginning of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the internal growth rate using ROA x b for end of perlod total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Question
![Gilmore, Inc., had equity of $160,000 at the beginning of the year. At the end of the year,
the company had total assets of $315,000. During the year, the company sold no new
equity. Net income for the year was $34,000 and dividends were $4,400.
a. Calculate the internal growth rate for the company. (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
b. Calculate the internal growth rate using ROA x b for beginning of period total assets.
(Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
c. Calculate the internal growth rate using ROA x b for end of perlod total assets. (Do
not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4959713-1829-4af8-bf6c-835a6a8149e3%2Fd4e0ff3c-9ede-43fb-ae7d-75462da6444a%2Fv6pr579_processed.png&w=3840&q=75)
Transcribed Image Text:Gilmore, Inc., had equity of $160,000 at the beginning of the year. At the end of the year,
the company had total assets of $315,000. During the year, the company sold no new
equity. Net income for the year was $34,000 and dividends were $4,400.
a. Calculate the internal growth rate for the company. (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
b. Calculate the internal growth rate using ROA x b for beginning of period total assets.
(Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
c. Calculate the internal growth rate using ROA x b for end of perlod total assets. (Do
not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)
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